Tag Archives: divorce finances

How Unemployment Will Affect Your Divorce ProcessLosing your job while in the middle of divorce will cause great upheaval in the process. Your regular income helps determine many parts of your divorce agreement, such as the division of property, child support, and spousal maintenance. It can be difficult to establish your income when you are still looking for a new job. Sudden unemployment should not halt your divorce process, but you will need to consider how losing your job changes what you need from your divorce.

Impact of Unemployment

While losing your job threatens your financial security, it can give you leverage to ask for more in your divorce agreement:

  • Because Illinois equitably divides marital properties during divorce, you can receive more than half of the marital properties to make up for lost income;
  • A lower income can lower your share of the child support obligation – at least until you get a new job; and
  • A lower income means you may receive more spousal maintenance or may eliminate maintenance if you would have been the payor.

All of these advantages are contingent upon you making a good faith effort to find a new job with a similar level of pay. If the court thinks you are abusing your unemployment status for personal gain, it may settle your divorce agreement using your previous income level. You need to document your efforts to find new employment.

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Divorcees Prefer Silence When Facing Financial ProblemsPeople who have filed for divorce are less likely to talk to others about their personal finances, according to a recent CNBC survey. Amongst the survey respondents who were divorced, 56 percent said that they rarely speak with family members about their money. Only 27 percent of all the survey respondents gave the same answer. There is nothing wrong with financial discretion when talking to family members. However, divorcees put themselves at risk if they do not talk to anyone about their financial troubles.

Reason for Silence

People dislike sharing their financial concerns with friends and family because they may be embarrassed about their situation. Unfortunately, divorce causes financial trouble for some people because:

  • They are primarily relying on their individual incomes to support themselves;
  • They lost some of their marital properties as part of the divorce;
  • They may have new expenses, including purchasing or renting their own homes; and
  • They may be required to pay child support and spousal maintenance.

It takes humility to admit that you need help despite worrying whether people will think less of you because you are struggling to pay bills and control your debt. Even if you are not in financial danger, you may be embarrassed to show that you cannot afford the same lifestyle as when you were married.

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Steps Needed for Financial Success After DivorceMuch of your work during your divorce will go towards ensuring that you are financially viable afterward. Through the division of property, you will lose assets that you may have been counting on for both your short-term stability and long-term investing. Holding onto key assets and establishing fair support payments is vital in reworking your financial plan. However, your divorce agreement is a starting point and not the end goal. You must follow through with wise decisions so as not to squander your hard work during the divorce.

Immediate Actions

When your divorce becomes officials, there are several changes you must make to acknowledge that you are no longer married:

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Changing Your Vehicle Insurance After DivorceSeparating your auto insurance from your spouse's insurance is one of the actions you must take after finishing your divorce. There is no urgency to do it during your divorce, and finalizing who owns which vehicle will help with the process. However, getting separate insurance policies requires more than a simple phone call. You and your former spouse must take multiple measures to ensure you are no longer tied to each other through your insurance. It may also be time for both of you to shop around for different policies.

Joint Decision

You cannot remove your spouse from your combined auto insurance policy without his or her permission. Having auto insurance is a legal requirement for drivers. Ending your spouse’s insurance without permission may cause him or her to unknowingly break the law by driving. If your spouse is involved in a crash while uninsured, he or she may bear a greater financial burden for property damage and personal injury expenses.

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Financing the Cost of Your DivorceDivorce is an expensive process. Beyond what you may give up in the divorce settlement, you are responsible for paying attorney and court fees. You may need an alternative form of financing if your available income cannot pay for your legal fees. Establishing credit or liquidating assets involves its own risks. You must carefully consider the consequences of each form of financing before making your decision.

Bank Loans and Credit Cards

If you have a good credit rating, you can pay your legal fees by taking out a loan or charging it to a credit card. Naturally, you will pay more over time because of interest. However, you must also consider what level of payments you will be able to afford after your divorce. You, and not your spouse, are responsible for the debt you create after you file for divorce.

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Goostree Law Group

Goostree Law Group

 555 S. Randall Road, Suite 200
St. Charles, IL 60174

 630-584-4800

 1770 Park Street, Suite 205
Naperville IL 60563

 630-364-4046

 400 S. County Farm Road, Suite 300
Wheaton, IL 60187

 630-407-1777

Our Illinois divorce attorneys represent clients in Kane County, DuPage County, Kendall County and DeKalb County, including Geneva, Batavia, St.Charles, Wayne, Wasco, Elburn, Virgil, Lily Lake, Aurora, North Aurora, Elgin, South Elgin, Bartlett, Crystal Lake, Gilberts, Millcreek, Maple Park, Kaneville, LaFox, Yorkville, Oswego, Plano, Sugar Grove, Big Rock, Bristol, Newark, DeKalb, Sycamore, Naperville, Wheaton, West Chicago, Winfield, Warrenville, Downers Grove, Lombard, Oak Brook, Streamwood, Hoffman Estates, Barrington, South Barrington, Lake Barrington, Schaumburg, Big Grove, Boulder Hill, Bristol, Joliet, Kendall, Lisbon, Minooka, Montgomery, Plainfield, Sandwich, Yorkville and many other cities.

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